July 1 2024: Bitcoin’s price increased on Monday, rebounding slightly from recent losses, though overall sentiment towards the cryptocurrency and broader markets remained cautious.
The market was jittery due to a potential major liquidation event, with the defunct exchange Mt Gox set to begin distributions of stolen tokens this week. Additionally, traders were anticipating further cues on U.S. interest rates from the Federal Reserve and upcoming economic data.
Bitcoin rose 4% over the past 24 hours, reaching $63,259.0 by 00:57 ET (04:57 GMT). The token also benefited from a weakening dollar, which declined by 0.2% on Monday.
Mt Gox Bitcoin Distribution Set to Begin
Liquidators of Mt Gox announced they will start distributing Bitcoin stolen during a 2014 hack from early July.
Traders speculated that recipients of the stolen tokens would likely sell them, given Bitcoin’s significant increase in value over the past decade. This potential selling pressure has been a concern, causing notable price drops in late June.
Crypto investment products recorded two consecutive weeks of outflows amid fears of a sell-off in Bitcoin.
Crypto Price Today: Altcoins Rise Amid Rate Jitters
Broader crypto markets saw a rise in altcoin prices on Monday, recovering some of the steep losses incurred in June.
Ether, the world’s second-largest token, jumped 3.7% to $3,490.79, buoyed by speculation that the Securities and Exchange Commission (SEC) might approve a spot Ether exchange-traded fund this week.
Other altcoins, including SOL, XRP, and ADA, rose between 1.5% and 8%, though trading volumes were low.
Meme tokens DOGE and SHIB each increased by over 4%.
Despite these gains, overall sentiment in the crypto market remained cautious ahead of several key indicators on U.S. interest rates expected this week.
Federal Reserve Chair Jerome Powell is scheduled to speak on Tuesday, with the minutes of the Fed’s June meeting set to be released on Wednesday. Nonfarm payrolls data, due on Friday, will also provide further insights into interest rate trends.
Traders have been increasing their bets that the Fed will cut rates by 25 basis points in September, a notion that has provided some support to the crypto market.